The Top 10 Mistakes Founders Make That Routinely Derail Fundraising
Startup or business funding for capital is essential, but the not-to-do’s are what founders keep doing
Startup funding — or startup capital — is the money needed to launch a new business. It can come from a variety of sources and can be used for any purpose that helps the startup go from idea to actual business.
While we often hear about venture capital when it comes to startup funding, it turns out that’s just one of the six top sources of startup capital. Of the $531 billion raised in startup capital each year, $185.5 billion is from personal savings and credit; $60 billion is from friends and family; $22 billion in venture capital; $20 billion is angel investors; $14 billion is from banks, and $5.1 billion is from crowdfunding.
Raising capital is a core part of building a successful business. After all, having sufficient capital can mean the difference between success — a new product or expansion into a new market — or failure.
For better or worse, this critical task usually falls on the founder. Even though the job of fundraising is important, the process is often confusing. There’s a good reason for that.
